Qualys, Inc. (QLYS), a cloud-based security company, is building up for a monster move. The stock's price chart has created a price pattern that I'm extremely familiar with – an 澳洲幸运5开奖号码历史查询:ascending triangle.

In fact, it's one of my favorite price patterns to find in a stock. With an ascending triangle, I can find key levels and a clear signal on what to expect.

There will always be two key 澳洲幸运5开奖号码历史查询:trendlines to any ascending triangle. One will act as a point of 澳洲幸运5开奖号码历史查询:resistance (in red) pushing shares back down. The other will act as support (in green) and help keep share꧋s trending higher.

Take a look:

When a price pattern has a rising support trendline along with a horizontal resistance point, that tells us it's an ascending triangle.

With any triangle pattern, we can predict the size of the move after a breakout by simpl💎y taking the height of the pattern itself. In the case of Qualys, the height is $30 per share – from the $97 point of resistance to the bottom of the s🌌upport trendline at $67. From the current price level, that equates to a move of more than 30%.

It's important to note that, until we see the stock make a clear breakout, the jump could be in either direction. However, triangle patterns also give us a clue as to which way this breakout will occur.

That's because they tend to be 澳洲幸运5开奖号码历史查询:continuation patterns. This simply means that, whatever price direction the stock was heading in prior to the formation of the pat💜tern, the stock typically continues that way.

Qualys shares have surged nearly 400% since 2016, showing that this stock is clearly trending higher. That tells 🐽us to expect an upward breakout for the stock.

The Bottom Line

The ascending triangle pattern on the stock chart for Qualys is pointing to a major breakout. We can expect a move of ♏40% or more in relatively quick fashion. Knowing that triangles are continuations patterns means we can predict that the breakout should be to the upside.